Non-OPEC Oil production may drop by 700,000 barrels per day this year: IEA

Non-OPEC Oil production is expected to decline by 700,000 barrels per day in 2016. This would be its largest annual decline since 1992, says Fatih Birol, IEA Executive Director.

“However US light tight oil production will recover and we expect the United States to be the largest contributor to supply growth during our forecast period to 2021,” Birol said in Tokyo today.

Supply from other non-OPEC producers, including Russia, China, Mexico and Colombia will decrease throughout the period due to lack of new investments. “With the fall in non-OPEC production we are seeing, we can expect the market to come back to balance in 2017. From 2018 onwards there will be stock draws, leading to a gradual increase in price levels,” he said.